Capital Allocators Monthly - July 2021

August 5, 2021 by Ted Seides

In Memory of Danny Offit

“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose.”
– Steve Jobs



Capital Allocators University. We created a course for investment professionals to build their individual talents, strengthen organizations, and drive investment results. Pre-Sale registration is now available, and you can read my commentary on the origins of the course here.

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From Ted’s Blog. I share my thoughts in a Premium feature called What Ted’s Thinking. In this piece, I relate the new initiatives at Capital Allocators to the potential for overconfidence that comes alongside making a new investment with a manager.

Read the Excitement of Optionality Here

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Ordered by reading time: tweets first, books last, and blog posts and articles in between

1. Monty’s Mantras and Ted Lasso. I’ve been a huge fan of Phoenix Suns coach Monty Williams since he gave this incredible eulogy after his wife’s tragic passing five years ago. Leading into the NBA finals, he offered up this nugget of leadership wisdom to young star player DeAndre Ayton. And even Monty is learning from Ted Lasso
Read Monty’s Mantras Here

2. Launching a new fund. I’ve often shared my experience that launching a new hedge fund in a mature industry is an uphill battle, including in this Tweetstorm. These pieces from Gavin Baker and Necker Value lay out that challenge.
Read Gavin Baker’s Take Here
Read Necker Value Here

3. Athletes and Mental Health. Simone Biles pulling out of the Olympics gymnastics competition left me with far more unanswered questions than answers. David Epstein wrote this perspective sharing the dark downside of elite competition, sharing the tragic challenges faced by his friend and former Olympic bobsledder Steve Mesler.

Read Getting Over Gold Here

4. Sahil Bloom, The Curiosity Chronicle. Sahil puts together terrific pieces on investing and life. He recently started a weekly email featuring one quote, one tweet, one article, and one podcast. I particularly enjoyed this recent piece.

Read Paradoxes of Life Here

5. Michael Cembalest, 2021 Private Equity Update. Michael is a past guest on the show and the head of strategy for JP Morgan’s giant asset and wealth management business. His research is data-driven and captures great insights. His bi-annual review of the private equity industry – timely with our mini-series – included two facts that struck me: 1) LBO and VC commitments combined comprise less than 1% of the U.S. equity total market capitalization and may have a long way to go, and 2) $500 billion is outstanding in subscription lines out of the $1 trillion in uncalled capital, raising all kinds of questions about unseen risk.
Read the JPM Private Equity Report Here


Past Capital Allocators Episodes

EP.202: Robert F. Smith – Private Equity Masters 3 – Vista Equity Partners

EP.203: David Rubenstein – Private Equity Masters 4 – The Carlyle Group

EP.204: Virgine Morgon – Private Equity Masters 5 – Eurazeo

EP.205: Doug Ostrover – Private Equity Masters 6 – Blue Owl Capital

Past Manager Meetings Episodes

EP.1: Jeremy Grantham, GMO – Interviewed by Alex Shahidi

EP.2: Eli Casdin, Casdin Capital – Interviewed by Joel Wittenberg

EP.3: Bill Ford, General Atlantic – Interviewed by Tom Lenehan

EP.4: Julia Bonafede, Rosetta Analytics – Interviewed by Jim Dunn

Best of the Rest

Maria Konnikova on the Decision Education Podcast. Annie Duke is hosting season two of the Alliance’s podcast, breaking down decision-making in sports.